Gold moved bearishly during the morning session yesterday after achieving the expected breakout below the initial support of 1549.00-127.2%- of CD leg for the bearish harmonic AB=CD pattern. This breakout was the motive behind reaching the support areas around 1520.00 where Stochastic has entered oversold zones, assisting it to correct mildly. Now, we classify the current price behaviors as normal correction to relieve Stochastic that has created a positive divergence before resuming the downside rally to form the last leg of the potential harmonic pattern, mainly targeting 1480.00-1460.00 zones. Areas of 1603.00 should protect the projected bearishness.
The trading range for today is among the key support at 1475.00 and key resistance now at 1603.00.
The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1562.00 targeting 1480.00 and stop loss above 1604.00 might be appropriate.|